- Gen Z is preparing for a potential recession with “no-buy lists” and other thrifty savings habits. They’re turning to free AI therapists, fast-food survey rewards, and dumpster diving to weather the downturn—especially as they’re the most vulnerable to layoffs and rising prices.
The “lipstick effect” has historically been a popular way to gauge a recession against spending habits—with shoppers opting to buy smaller luxuries, like makeup, during a downturn versus cars and property.
But Gen Z is redefining their recession experience through all the things they won’t buy. From turning to free ChatGPT bots in lieu of costly human therapists, to creating “no buy” lists including clothes and beauty treatments, they’re proving they’re willing to do anything to save a buck.
“Right now there’s a lot of economic uncertainty,” TikTok user @whatshesaves said in a video, adding she is tackling $9,000 worth of debt. “I am actually trying to go on this journey of eliminating as many things out of my life, in living more intentionally, not just going shopping.”
Her TikTok video clearly resonated with what a lot of young people are feeling right now, raking in over 2.6 million views and 14,500 comments. Users chimed in under the video with their frugal hacks: surviving off Burger King survey rewards, eating kids’ meals as an adult, and dumpster diving for essentials.
Another user shared the tricks young adults like her pulled out during the 2008 recession. She divulged about sneaking into hotel buffets and grabbing extra condiments at restaurants to take home—potential inspiration for the young generation facing an economic crisis today.
The ways Gen Z are ‘recession-proofing’ their lives
While no generation is immune to economic downturn, Gen Z is considered especially vulnerable. They’re the lowest on the workforce totem pole with the smallest salaries, often shackled with student debt, still trying to understand finances like many generations navigated during their 20’s.
Moreover, Gen Z don’t have the savings piled up their Gen X counterparts do, so cutting back on spending in small ways has become a way to actively “recession-proof” their lives.
One popular way young people have been sharing their saving hacks is through “no-buy lists,” detailing all the things they’re no longer splurging on during the recession. One user on TikTok shared her rejection roster: blankets, polyester “plastic” clothing, shoes, occasion outfits, trinkets, and accessories. She’s also opted out of salon visits—like nail and hair services—alongside buying home decor. Another user echoed her plans to cut back spending on clothes as well as vacations and dates.
Beyond frivolous expenditures, Gen Z is also shaving their spending on essentials to make ends meet. One 25-year-old digital marketing specialist replaced her human therapist with ChatGPT; Aeyrn Briscoe’s weekly sessions morphed into mini text conversations with the AI chatbot she now turns to several times a day.
“Therapy is expensive,” Briscoe told The Wall Street Journal. “No one has an extra $200 to spend to talk to someone.”
Gen Z ditching ‘doom spending’ amid financial fears
Gen Z trends of “recession-proofing” and “no-buy lists” couldn’t be farther from the tune they were singing a few months ago. Their days of splurging on little luxuries may be over as the economy takes a turn for the worse.
Young people were once known for “doom spending”: shelling out on their pets, vacations, and clothes for short-term gratification. With the prospect of buying a home getting further out of reach and living costs reaching a fever pitch, these little dopamine hits help quell their economic anxieties. After all, Gen Z is increasingly doubtful they’ll ever be able to afford the American Dream. But now, even the small luxuries are fast falling out of favor.
Nearly 47% of Gen Z do not have an emergency fund, and 27% carry more debt than they do savings, according to a 2025 report from Bankrate. These entry-level professionals are feeling the squeeze at work, too; only 43% are positive about their employer’s business outlook for the next six months, according to a recent report from Glassdoor. That’s the lowest number—and weakest confidence—ever reported since data collection started in 2016.
Not only are Gen Z’s wallets under a pinch, but their jobs may be too.
“Entry-level workers have less job security,” Daniel Zhao, lead economist for Glassdoor, told Fortune. “As they see these economic headwinds on the horizon, there’s an understandable concern that they might be the first ones to lose their jobs in a recession, or they’ll be left out in the cold when trying to find a new job.”
This story was originally featured on Fortune.com
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